|Congress passed the Paycheck Protection Flexibility Act and President Donald Trump is expected to sign the bill into law. The bill changes many provisions of the Payroll Protection Program (PPP) and extends the timing deadlines originally set in place. The timing changes benefit the borrower by extending the eight week period to 24 weeks and the June 30, 2020 deadline to December 31, 2020. In addition, the amount required to be spent on payroll has been reduced from 75% to 60%. However, the bill has an important new provision stating if 60% of the PPP funds are not spent on payroll the loan will not qualify for forgiveness. The original bill only reduced the loan forgiveness portion versus now totally eliminating if the thresholds are not met. |
You can read more about these forgiveness changes by clicking here.
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|Sources: American Institute of Certified Public Accountants and Journal of Accountancy|